Investment Banking Tutorials
- Investment Banking Free Course
- Investment Banking Basics
- What is Investment Banking? (Overview of what do they actually do!)
- Investment Banking vs Commercial Banking
- Equity Research in an Investment Bank
- What is Asset Management Company AMC
- Sales and Trading in Investment Banking
- Private Placement, IPO and FPO in Investment Banking
- Investment Banking – Underwriters and Market Makers
- Investment Banking – Mergers and Acquisitions
- Investment Banking – Restructuring and Reorganisation
- Investment Banking Roles and Responsibilities
- Market Makers
- Propreitary Trading
- Deal Origination (Sourcing)
- Initial Public Offering (IPO)
- Top 4 Must Know Investment Banking Charts (Free Download Template included)
- Pitch Book | Guide to Investment Banking Pitch Book (Examples)
- What is LBO?
- Leverage buyout Lbo Analysis
- LBO Financing
- Trading Floor
- Market Order vs Limit Order
- Merchant Bank
- Best Investment Banking Books
- Nasdaq vs Dow Jones
- Nasdaq vs Nyse
- Differences Between NSE and BSE
- Investment Banking Careers
- Investment Banking Interview Questions (with Answers)
- How to get into Investment Banking?
- Investment Banking Job Description
- Investment Banking Associate Salary
- Investment Banking Job For Graduates (Engineers) | Top 8 Tips
- How to get an Investment Banking Internship?
- Top 10 Finance Certifications Programs
- Investment Banking Lifestyle
- Investment Banking Exit Opportunities
- Investment Banking Case Studies
- Top 10 Best Finance courses (with Online Certification)
- Investor Relation Job Description
- Financial Analyst Job Description
- Investment Banking vs Equity Research
- Investment Banking vs Asset Management
- Commercial Banking vs Merchant Banking
- Investment Banking vs Corporate Banking
- Portfolio Management vs Investment Banking
- Investment Banking vs Hedge Fund Manager
- Investment Banking vs Investment Management
- Investment Banking vs Private Equity
- Careers in Trading
- Investment Banking Firms
- Top Bulge Bracket Investment Banks
- Top Middle Market Investment Banks
- Top Boutique Investment Banks
- Investment Banking in Dubai
- Investment Banking in Hong Kong
- Investment Banking in Russia
- Investment Banking in Brazil
- Investment Banking in China
- Investment Banking in Australia
- Investment Banking in Saudi Arabia
- Investment Banking in Singapore
- Investment Banking in London (UK)
- Investment Banking in India
- Investment Banking in Ireland
- Investment Banking in South Africa
- Investment Banking in Canada
- Investment Banking in Germany
- Investment Banking in France
- Investment Banking in Malaysia
- Investment Banking in Philippines
- Investment Banking in Boston
- Investment Banking in San Francisco
- Top Banks
- Top Banks in Australia
- Top Banks In Austria
- Top Banks In Bahrain
- Top Banks In Belgium
- Top Banks In Bermuda
- Top Banks In British Virgin Islands
- Top Banks In Brunei
- Top Banks In Canada
- Top Banks In Cayman Islands
- Top Banks In Denmark
- Top Banks In Finland
- Top Banks In France
- Top Banks In Germany
- Top Banks In Greenland
- Top Banks In Guernsey
- Top Banks In Ireland
- Top Banks In Isle of Man
- Top Banks In Japan
- Top Banks In Kuwait
- Top Banks In Liechtenstein
- Top Banks In Luxembourg
- Top Banks In Macau
- Top Banks In Norway
- Top Banks In Oman
- Top Banks in Pakistan
- Top Banks in Philippines
- Top Banks In Puerto Rico
- Top Banks In Qatar
- Top Banks In Saudi Arabia
- Banks in South Africa
- Top Banks In Singapore
- Top Banks In South Korea
- Top Banks In Sweden
- Top Banks In Switzerland
- Top Banks in UAE
- Top Banks in United Kingdom
- Top Banks in USA
- Mergers and Acquisitions
- What is Mergers and Acquisitions?
- Mergers vs Acquisitions
- Synergy in M&A
- Successful Mergers and Acquisitions
- Financing Acquisitions
- Statutory Merger
- Joint Venture
- White Knight
- Hostile Takeover
- Golden Parachute
- Poison Pills
- What is Amalgamation?
- Spin off vs Split Off
- Forward Integration
- Backward Integration
- Horizontal vs Vertical Integration
- What is Divesting / Divestiture?
- Bootstrap Effect
- PAC MAN Defense
- Flip-In Poison Pill
- Greenshoe Option
- Dawn Raid Takeovers
- Crown Jewels Defense
- Best Mergers and Acquisitions Books
- What is Asset Restructuring?
What is Investment banking?
Investment banking involves providing a range of banking services like underwriting, raising capitals for companies, issuing securities and facilitating mergers. Investment banks act as an intermediate during raising capital funding. The investment banking basically involves two main sides vis-à-vis the selling side and the buying side. The selling side includes trading securities or monetary gain or portfolio gain and it also involves promoting of securities or the research and underwriting while the buying side involves giving sound advice to clients on investment services.
What is Corporate Banking?
Corporate banking is also known as corporate financing. Corporate banking caters to large scale companies and businesses. They focus on a variety of banking services like issuing loans, setting up portfolios, helping MNCs by giving them options for lowering their taxes. We can say that a corporate banker closely studies the portfolios of his clients and ensure that financial risks are minimized. There are numerous opportunities at commercial banks. There are many positions for which you can work for example, Credit Analyst, Loan Officer, Branch Manager, Trust Officer and mortgage banker.
Pre-Requisites to the career
If you are an undergrad, then you should pursue MBA from a business school and enter the sector of investment banking as an associate. The skills that you would want to inculcate in yourselves would include an in-depth understanding of corporate finance, quick calculation skills and organizational analysis. Excellent communication skills are must for a candidate looking forward to a career in investment banking.
A qualification in a subject such as law, business studies, management, accountancy, finance, mathematics or economics can be advantageous, as can an MBA or a similar professional qualification for having opportunities in corporate banking. Additional skills required for a career in corporate banking include numeracy skills, ability to solve problems, negotiation skills and ability to work under pressure.
Investment Banking vs Corporate Banking – Employment Outlook
There are many positions to acquire in the field of investment banking sector including:
The Analyst is the basic profile in the investment banking. Main roles of an analyst involve creating financial models, perform company analysis, do due diligence, create pitch books and punch in data. You have to have at least 1 year experience as an analyst before you apply for the post of an associate.
Main job roles of an Investment Banking associate are almost similar to that of an analyst except for the additional responsibility of acting as an intermediate between junior and senior bankers. You are required to be an associate for 3 or 4 years before being promoted to the post of Vice President.
- Vice President
Vice President is just one level below the position of managing director. Vice President monitors his associates and performs many crucial tasks in the investment banking sector. Vice president has to hold up his position for a minimum of 2 to 3 years before landing up as a managing director.
- Managing director
Managing directors are usually highly experienced candidates that represent the firm in foreign countries and in important meetings. He has the power to take all the strategic decisions of the company.
Unlike investment banking, there are no levels in the corporate banking but one can work in the following positions:
- Loan Officer
A loan officer decides whether a client is eligible for a loan or not. He monitors the customer’s financial conditions and gives him the best suitable loan for him.
- Branch Manager
Major Job roles of a branch manager are supervising employees, taking care of the smooth selling and delivery of financial services and maintaining business relationships.
- Trust Officer
The main focus of a trust officer are the areas like trust services, estate planning, taxes, investment etc.
Investment Banking vs Corporate Banking – Compensation
A recent research shows that investment bankers earn more money than corporate bankers. An analyst in investment banking can earn as much as $70,000 as their base salary. As an associate, your basic compensation would be $100,000. A vice president would earn $250,000.
Entry level jobs in the corporate banking sector will pay you $30,000 to $40,000 per year. Having three years of experience can result in an increased compensation of $54,000 to $86,000.
Investment Banking vs Corporate Banking – Pros & Cons
Pros and cons of having a career in investment banking sector are:
- Handsome pay
- Steep learning curve
- Long working hours
- Cut throat competition
In corporate banking salary, pros and cons are:
- Flexible working hours
- Easy exit options
- Defined career path
- Compensation is hard earned
- No appreciation
There is an intense competition in investment banking jobs but a decent salary can compensate this while in corporate banking jobs one can enjoy flexible working hours and there is not much competition but compensation has to be earned and does not come with the degree. It is not easy to choose between both the professions. Those are want to enjoy their weekends over a handsome pay can opt for career in corporate banking sector and those who value money and can spend their day and night to get rich must opt for career in investment banking sector. Also, there is a chance of being in the limelight and being appreciated in investment banking jobs while corporate banking jobs are dull and you will not get much recognition. The choice is entirely yours to make.